PLEASE COMPLETE IN EXCEL

Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintains its target capital structure, what will its payout ratio be if EBIT is $2,000,000, Capital budget $850,000, Interest rate 10%, Debt 40%, Debt outstanding $5,000,00, Equity 60%, Shares outstanding $5,000,000, and the Tax rate is 40%?Keys Financial has done extremely well in recent years, and its stock now sells for $175 per share. Management wants to get the price down to a more typical level, which it thinks is $25 per share. What stock split would be required to get to this price, assuming the transaction has no effect on the total market value? Put another way, how many new shares should be given per one old share?Brooks Corp.'s projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $600,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?You were recently hired by Scheuer Media Inc. to estimate its cost of common equity. You obtained the following data: D₁ = $1.75; P₀ = $42.50; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?The CFO of Lenox Industries hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: (1) r_d = yield on the firms bonds = 7.00% and the risk premium over its own debt cost = 4.00%. (2) r_RF = 5.00%, RP_M = 6.00%, and b = 1.25. (3) D₁ = $1.20, P₀ = $35.00, and g = 8.00% (constant). You were asked to estimate the cost of common based on the three most commonly used methods and then to indicate the difference between the highest and lowest of these estimates. What is that difference?You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley's WACC?Assume that Kish Inc. hired you as a consultant to help estimate its cost of common equity. You have obtained the following data: D₀ = $0.90; P₀ = $27.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of common from retained earnings?An analyst wants to use the Black-Scholes model to value call options on the stock of Ledbetter Inc. based on the following data: The price of the stock is $40. The strike price of the option is $40. The option matures in 3 months (t = 0.25). The standard deviation of the stocks returns is 0.40, and the variance is 0.16. The risk-free rate is 6%. Given this information, the analyst then calculated the following necessary components of the Black-Scholes model: d₁ = 0.175 d₂ = -0.025 N(d₁) = 0.56946 N(d₂) = 0.49003 N(d₁) and N(d₂) represent areas under a standard normal distribution function. Using the Black-Scholes model, what is the value of the call option?An analyst wants to use the Black-Scholes model to value call options on the stock of Ledbetter Inc. based on the following data: The price of the stock is $45. The strike price of the option is $40. The option matures in 6 months (t = 0.5). The standard deviation of the stocks returns is 0.50, and the variance is 0.25. The risk-free rate is 5%. Using the Black-Scholes model, what is the value of the put option?Suppose you believe that Delva Corporation's stock price is going to decline from its current level of $82.50 sometime during the next 5 months. For $510.25 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $85 per share. If you bought this option for $510.25 and Delva's stock price actually dropped to $60, what would your pre-tax net profit be